**Prada Acquires Versace in Landmark €1.25 Billion Deal, Reshaping Italian Luxury Market**
Milan – Prada Group has completed the acquisition of iconic Italian fashion house Versace for €1.25 billion, a strategic move poised to redefine the landscape of European luxury. This landmark transaction marks the largest operation in Prada Group’s history and signals the end of Versace’s ownership under Capri Holdings, aiming to inject new vitality into the storied brand.
The €1.25 billion deal underscores Prada’s ambition to consolidate its position in the high-end fashion sector. The acquisition comes as Versace, despite its iconic status, has faced challenges in keeping pace with the rapid expansion of larger luxury conglomerates. Prada’s leadership has indicated that the purchase is designed to revitalize Versace, providing it with the necessary resources to strengthen its market presence and innovative capabilities, and crucially, to keep the brand within Italian ownership, fending off interest from French luxury giants.
Prada plans a gradual relaunch of Versace, integrating it into its robust production system and global supply chain. This strategic integration will grant Versace access to a vast network of manufacturing and distribution, critical for scaling operations and reaching a wider international audience. While Prada and Versace represent distinctly different aesthetic philosophies – Prada known for its intellectual minimalism and Versace for its opulent glamour – the acquiring group has pledged to meticulously preserve Versace’s unique identity and creative vision. The aim is to empower Versace to compete more effectively against dominant French luxury groups.
The acquisition highlights the dynamism and potential within the Italian luxury sector, which is a significant contributor to the nation’s GDP. In 2024, Prada reported substantial growth in both sales and profits, demonstrating a strong financial footing. Versace, prior to the acquisition, also maintained a considerable turnover, indicating a solid foundation for future growth under new stewardship. This consolidation reflects a broader trend within the luxury industry to build stronger, more resilient houses capable of sustained global competition.
This strategic alliance between two titans of Italian fashion is expected to create a powerful new entity, aiming to secure the future of Italian luxury heritage amidst an increasingly competitive global market.
